Thousands of Workers due PRSI Refunds

It is not yet known how many people may be entitled to claim for overcharging of PRSI, however 900,000 people earned below the €26,000 threshold in 2010!

The overcharging is due to the way the health levy element of social insurance was applied. If you earned less than €26,000 you were not liable to pay the levy. However, if you earned more than €500 a week the levy was automatically deducted from your pay. This means that they are due money back with an average refund in the sum of €400.

The Department of Social Protection insisted this is not an error and it said the system was set up to deduct PRSI on a weekly basis and workers could later apply to get the money refunded.

There are situations where you may be due a refund of a portion of the PRSI for 2008-2010 called the Health Levy which are :-

Medical Card Holders:

If you earned over €500 in any week in years 2008-2010 and your payroll did not know you had a Medical Card, you will be due a Health Levy Refund.

Annual Threshold Exemption:

If you earned over €500 in any week in years 2008-2010 you will have paid Health Levy. But if your annual gross pay was less than €26,000 for years 2008-2010, then you will be due a refund of the health levy paid in those weeks.

Less commonly, PRSI or Health Levy Refunds may also be due in some other situations such as:-

If you were paying maintenance to a spouse or ex partner

If you were receiving full salary whilst receiving maternity or illness/disability benefit

If you made pension contributions directly to a pension provider i.e. not deducted through your payroll

If you were receiving the one parent family payment or survivors pension

If you were over 70

The refund is not automatic therefore you will need to check your payslisp/P60s for 2008-2010 then contact Jigsaw Financial Solutions today for a FREE review and calculation. Contact Lorraine on 087 2608988 or lorraine@jigsawfinancialsolutions.ie

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